2. Responsibility The Economic Regulation (ER) department is responsible for the effective regulation of the electricity supply industry through the provision of efficient economic and financial guidelines and advice to the Board and stakeholders.

The department is responsible for the development of the industry’s tariff systems and methodologies in line with Government Policies and Legislations. The department is responsible to review, calculate and determine generation, transmission and distribution tariffs for the electricity industry and approval of revenue requirements. The department further evaluates and assesses the impact of the ESI on the economy and the end consumers. Create an enabling environment for private sector investment in the electricity industry.

to ensure the efficient functioning and development of the electricity industry, efficient electricity provision; and (iii) security of electricity provision

to ensure that electricity tariffs and charges allow licensees a reasonable rate of return in accordance with these Economic Rules and the Board’s tariff methodologies in order to assure that licensees are able to finance the electricity services and activities of their licensed undertakings

to establish an environment where the Board can effectively exercise control over, monitor and enforce the economic regulation of electricity

4.2 Rules

4.2.1 Resellers rules (draft) The objects of these Rules are –

to establish a regulated environment within which redistribution of electricity can take place in order to ensure the efficient conveyance and delivery of electricity under exempted circumstances

to ensure that the interests of clients, supplying licensees and other electricity licensees operating in the same area as a redistributor are sufficiently protected as regards pricing, safety and standards on quality of electricity provision and service of electricity so delivered

the generation of additional power into the national grid, reducing the investment requirements of utilities and conventional independent power producers

to allow customer-generators to reduce their imports from distribution networks through generating for own consumption

to allow customer-generators to export to distribution networks up to the customer-generators' imports from distribution networks

the promotion of sustainable renewable energy sources, small scale investments, value addition and electricity market development

4.2.3 Renewable Feed in Tariff (REFIT) rules (draft)The objective of the Rules is to reach a level of clarification from the outset so that the REFIT Program’s message to the private developers is “if you build it, we are obligated to buy it at the pre-determined price” as long as they put together a Viable Project.

4.3 PoliciesNational Connection Charge Policy The overall objective of the National Connection Charge Policy is to establish a standardised approach to dealing with power network connections and associated connection charges.

4.4 Tariff Methodologies The department uses a rate of return tariff methodology for the calculation of tariffs (generation, transmission and distribution) as per recommendations of the National Tariff Study of 2001, detailed methodologies are approved and are currently being used with specific models developed such as; NamPower Application review Model and Operating and Reporting Manual (ORM) for Generation and Transmission and Distribution tariff reviews respectively.